If you use Bitcoin in Australia, you would know you get taxed twice. Now, the government is moving to fix the issue.
Treasurer Scott Morrison’s remarks may have gotten a little lost amid the media maelstrom caused by the possibility of an early election in Australia, but he made an announcement Monday that should make digital currency enthusiasts cautiously happy.
At an event at Sydney fintech hub Stone and Chalk, Morrison launched the government’s plan to make Australia “a hot house” for fintech investment. On the agenda: A bid to end the onerous tax treatment of digital currencies such as Bitcoin.
“We will take action to address the double GST treatment of digital currencies. We won’t be taxing digital currency,” Morrison said in his remarks.
Currently, under a 2014 ruling by the Australian Taxation Office, Bitcoin is treated as a commodity in Australia and not a currency, meaning a 10% Goods and Services Tax (GST) applies to Bitcoin transactions and the goods purchased. That means people are “double taxed” when using Bitcoin to purchase anything also subject to GST.
The changes won’t be immediate and the fine print will